The BRRRR Formula Has Changed (It Still Makes You Rich) | AMA (Ask Meyer Anything)

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 21 February 2025

⏱️ 38 minutes

🔗️ Recording | iTunes | RSS

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Summary

Think the BRRRR method (buy, rehab, rent, refinance, repeat) is dead because of high interest rates and rising home prices? Think again. We’re doing BRRRR deals right now that are making us cash flow and serious equity while most investors sit on the sidelines. But how do we FIND these money-making BRRRR deals? We’re sharing the new BRRRR formula in today’s episode, along with more questions and answers from the BiggerPockets Forums. Besides uncovering our BRRRR secrets, we’re helping an investor scale from single-family rentals to multifamily rentals. This is a BIG jump, and there’s a smarter way to scale your way up to big, new-build multifamily buildings. Next, an investor finally sees the light, realizing cash flow ISN’T everything. He’s about to walk into a nice chunk of equity with his new property, but is the cash flow TOO low (should he worry)? What were you thinking about when you were 18? Maybe you were stressing out about college applications or sleeping in until noon. One ambitious young investor wants to get his first rental at just 18 years old, but on this rare occasion, we advise against it. If you’re in his position, too, we’d recommend doing something else first. Finally, are “small towns” too risky to invest in? How small is too small? We’re getting into it in this episode! Looking to invest? Need answers? Ask your question on the BiggerPockets Forums! In This Episode We Cover: How to BRRRR in 2025 and how Henry finds his undervalued real estate deals The pitfalls of scaling from single to multifamily rentals and how to do it the right way Is a low cash flow rental worth it for a five-figure equity gain once purchased? How to start investing in real estate at a very young age (18 years old!) Investing in small towns and how to see where the big companies are going first And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Ask Your Question on the BiggerPockets Forums BiggerPockets YouTube Apply to Be a Podcast Guest Try REsimpli, The Only All-In-One Real Estate Investor CRM Software That Helps You Manage Data, Marketing, Sales, and Operations Grab the BRRRR Book, “Buy, Rehab, Rent, Refinance, Repeat” Sign Up for the BiggerPocket Real Estate Newsletter Find an Investor-Friendly Agent in Your Area Ask Your Question on the BiggerPockets Forums Connect with Dave (00:00) Intro (01:00) How to BRRRR in 2025 (09:03) Scaling from Single to Multifamily (15:36) Low Cash Flow Worth It? (20:09) Start Investing at 18? (24:20) Buying in “Small” Towns (31:13) Ask Your Question! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1086 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	If you're struggling to move forward towards financial freedom, keep listening or answering
0:04.5	your questions today.
0:11.0	What's up, everyone? It's Dave Meyer, head of real estate investing at Bigger Pockets,
0:15.8	joined by Henry Washington today. And we're diving back into the Bigger Pockets forums to help the people out
0:22.6	with a little Q&A. We're going to touch on how to make a burr work in today's environment
0:27.1	when it's the right time to scale up from residential to multifamily investing, how to invest
0:32.3	at a very young age, and much more. Henry, how's it going?
0:36.0	What's going on, Dave? Happy to be here. Good. Well,
0:38.5	we've got some great questions. A couple of them, I think, are right up your alley. So let's jump in.
0:43.9	But first, I want to remind all of our listeners that these questions come right from the
0:48.0	BiggerPockets forums. You go to BiggerPockets.com slash forums where you can ask 3 million BiggerPockets members, your questions,
0:56.1	and they might just get picked to be answered here on this podcast.
1:00.5	All right, Henry, our first question today comes from David in Houston.
1:05.1	He asks, for those focused on the Burr strategy, what strategies are you using to find deals in a market with rising
1:11.9	interest rates and fluctuating property values? You're having more success sourcing off-market
1:16.9	properties, or do you focus on distressed opportunities through agents or wholesalers? And with
1:21.8	lenders tightening up, are you still able to generate your desired profit when you refinance?
1:26.6	This one, like I said, seems right up your alley.
1:28.5	You do a lot of renovation, value-ad investing, Henry. Give us some insight into how you're managing
1:33.3	it these days. Yeah, it was like 17 questions in one. Yeah, it was. Yes, we will be here all day.
1:39.4	Let's start with the first one. What strategies are you using to find deals? We're mostly sourcing our deals still through
1:45.9	direct mail and some other channels. We use a lot of direct mail. We do some paper click running
	...

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